Question
All else equal, a large decline in the real interest rate will shift the:
investment demand curve rightward
investment demand curve leftward
investment schedule upward
investment schedule downward
Question
In order for mutually beneficial trade to occur between two otherwise isolated nations:
each nation must be able to produce at least one good relatively cheaper than the other
each nation must face constant costs in the production of the good it exports
one nation’s production must be labor-intensive while the other nation’s production is capital-intensive
each nation must be able to produce at least one good absolutely cheaper than the other
Question
If the Federal Reserve System buys government securities from commercial banks and the public:
the money supply will contract
commercial bank reserves will decline
it will be easier to obtain loans at commercial banks
commercial bank reserves will be unaffected
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